When long- run average cost increases as output increases there are
A) constant returns to scale.
B) diseconomies of scale.
C) economies of scale.
D) None of the above.

Question

Quizplus · Accepted Answer

When long-run average cost increases as output increases, it indicates diseconomies of scale. This means that as a firm expands its production, its costs per unit increase.

When Long- Run Average Cost Increases as Output Increases There